What Types of Auto Insurance do I Need?

Drivers are often confused about how much auto insurance coverage they need to be fully protected. If you are trying to decide what automobile insurance covers in order to be secure, there are two things that you must keep in mind: the requirements of your state and your own personal needs. By considering both of these factors, you will be able to determine just how much coverage to purchase, and you won’t be stuck with a policy that offers too much coverage or not enough coverage.

The Basics

It is imperative that you consider the state requirement for insurance when you are comparing car coverage policies. In order to comply with the law, drivers must secure at least the minimum amount of coverage required by their state. Generally, all states require drivers to secure liability coverage. Liability coverage comes in two different types: bodily liability injury coverage and property damage liability coverage. Bodily injury liability coverage covers injuries sustained by the other driver and his or her passengers in an accident that is your fault. This type of coverage may also be used to provide the injured party with compensation due to loss of income and to cover any legal fees that might be associated with the accident. Property damage liability coverage will provide compensation to cover the costs of damaged cause by your vehicle to another person’s property, including his or her vehicle, home, and yard. It is important to note that both types of liability coverage are meant to offer compensation to the other driver and his or her passengers. Neither one of these two types of coverage will pay for damage done to your vehicle or injuries that you incur. To get coverage that will cover you and your vehicle, you will need to purchase additional types of insurance.

Extra Requirements

Sometimes, the minimum requirements for insurance are enough for drivers. However, this isn’t always the case, and drivers need to secure other types of insurance for their vehicles. To determine what you need above and beyond the state requirements, it’s important for you to think about what your personal needs for insurance are. One of the most important questions you need to ask yourself is: how much is my vehicle worth? Knowing the answer to this question is imperative, as it will help you to determine how much coverage you should purchase so that your car will be repaired or replaced in the event of an accident. If you want to make sure that your car will be repaired no matter who is at fault, then you should purchase collision coverage. Collision coverage will cover the costs associated with repairing or replacing your car, in the event that it is damaged in an accident. When deciding on coverage limits for collision coverage, you need to know what your vehicle is worth. That way, you can purchase just enough coverage to cover the costs of repairing it. There is no need to secure extra coverage, as this money will never be used. You may also want to purchase comprehensive coverage. This type of coverage will protect your vehicle in the event that it is damaged by something other than a collision. Comprehensive coverage will pay for damages caused by natural disasters, theft, vandalism, and animal attacks. Other situations may be covered under your policy, but each insurance company will offer different options.

Getting the right amount of needed auto insurance coverage is possible, if you take the time to sit down and research the requirements and think about your personal needs. You can get just enough coverage and pay the right amount.